<PAGE 1>
                                    Form 10-Q
                                        
                                        
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C.  20549
                                        
                        Quarterly Report Under Section 13
                     of the Securities Exchange Act of 1934




For Quarter Ended      June 30, 1997      Commission file number 2-80466




                        Norwest Financial, Inc.
         (Exact name of registrant as specified in its charter)




                  Iowa                                42 1186565
       (State or other jurisdiction of             (I.R.S. Employer
        incorporation or organization)              Identification No.)




   206 Eighth Street, Des Moines, Iowa                      50309
(Address of principal executive offices)                  (Zip Code)




Registrant's telephone number, including area code    (515) 243-2131



Indicate by check mark whether the registrant (1) has filed all reports required
to  be  filed  by Section 13 of the Securities Exchange Act of 1934  during  the
preceding 12 months (or for such shorter period that the registrant was required
to  file such reports), and (2) has been subject to such filing requirements for
the past 90 days.  Yes   X .    No     .

Indicate  the  number of shares outstanding of each of the issuer's  classes  of
common  stock,  as  of the latest practicable date.  Common Stock  (without  par
value):  1,000 shares outstanding as of August 1, 1997.

The registrant meets the conditions set forth in General Instruction H(1)(a) and
(b)  of  Form 10-Q and is therefore filing this Form with the reduced disclosure
format.


<PAGE 2>
                         PART I.  FINANCIAL INFORMATION
                                        
                             NORWEST FINANCIAL, INC.
                                        
                           Consolidated Balance Sheets
                                        
                             (Thousands of Dollars)


                                   (Unaudited)
                                     June 30,     December 31,

           Assets                     1997            1996

Cash and cash equivalents          $  118,235      $  141,692

Securities available for sale         985,724         816,980

Finance receivables:
  Consumer:
    Loans                           3,424,985       3,324,655
    Sales finance                   1,721,701       1,683,655
    Other                             420,110         447,021
  Commercial                          455,784         494,104

Total finance receivables           6,022,580       5,949,435

  Less allowance for credit losses    173,180         169,133

Finance receivables - net           5,849,400       5,780,302



Notes receivable - affiliates         625,307         574,344



Property and equipment (at cost, less
  accumulated depreciation of $94,842
  for 1997 and $89,373 for 1996)       82,515          75,068

Deferred income taxes                  39,903          34,456

Other assets                          200,166         338,003


          Total assets             $7,901,250      $7,760,845





See accompanying notes to consolidated financial statements.

<PAGE 3>
                             NORWEST FINANCIAL, INC.
                                        
                           Consolidated Balance Sheets
                                        
                             (Thousands of Dollars)


                                   (Unaudited)
                                     June 30,     December 31,
          Liabilities and
        Stockholder's Equity          1997            1996

Loans payable - short-term:
  Commercial paper                 $1,767,986      $1,732,095
  Affiliates                          250,662         173,006
  Other                                               195,000
Unearned insurance premiums
  and commissions                     134,349         136,564
Insurance claims and 
  policy reserves                      36,233          35,893
Accrued interest payable               69,378          75,765
Other payables to affiliates           12,434           5,565
Other liabilities                     230,756         216,031

Long-term debt:
  Senior                            4,097,321       4,080,894
  Subordinated                          2,000          52,000

          Total long-term debt      4,099,321       4,132,894

          Total liabilities         6,601,119       6,702,813



Stockholder's equity:
  Common stock without par value
    (authorized 1,000 shares,
     issued 1,000 shares)               3,855           3,855
  Additional paid in capital          202,766          90,766
  Retained earnings (note 2)        1,089,054         959,697
  Foreign currency translation 
    adjustment                         (6,881)         (5,991)
  Net unrealized holding gain
    on securities available for sale,
    net of income taxes                11,337           9,705

Total stockholder's equity          1,300,131       1,058,032

  Total liabilities and
  stockholder's equity             $7,901,250      $7,760,845



See accompanying notes to consolidated financial statements.

<PAGE 4>
                             NORWEST FINANCIAL, INC.
                                        
                 Statements of Consolidated Earnings (Unaudited)
                                        
                             (Thousands of Dollars)

<TABLE>
<CAPTION>


                             Quarter Ended June 30,    Six Months Ended June 30,

                                     1997        1996      1997         1996
<S>                                <C>         <C>       <C>           <C>
Income:

  Finance charges and interest      $298,593    $296,939  $599,957     $593,364

  Insurance premiums and commissions  34,679      34,553    69,857       67,631

  Other income (note 3)               50,166      46,618    98,079       91,443

     Total income                    383,438     378,110   767,893      752,438


Expenses:

  Operating expenses                 130,112     128,276   260,806      254,416

  Interest and debt expense           92,934      92,703   185,813      187,407

  Provision for credit losses         44,627      43,884    99,376       89,836

  Insurance losses and loss expenses  11,007      10,147    20,281       20,037

    Total expenses                   278,680     275,010   566,276      551,696

    Earnings before income taxes     104,758     103,100   201,617      200,742

Income taxes                          36,449      36,102    70,531       71,745

    Net earnings                    $ 68,309    $ 66,998  $131,086     $128,997


</TABLE>



See accompanying notes to consolidated financial statements.

<PAGE 5>
                             NORWEST FINANCIAL, INC.
                                        
                Statements of Consolidated Cash Flows (Unaudited)
                 Increase(Decrease) in Cash and Cash Equivalents
                                        
                             (Thousands of Dollars)

                                          Six Months Ended June 30,

                                            1997            1996
Cash flows from operating activities:
  Net earnings                          $   131,086    $   128,997
  Adjustments to reconcile net earnings to
  net cash flows from operating activities:
      Provision for credit losses            99,376         89,836
      Depreciation and amortization          13,963         13,665
      Deferred income taxes                  (6,258)        (1,596)
      Other receivables from affiliate                      31,643
      Other assets                          (21,680)        20,270
      Unearned insurance premiums and
        commissions                          (2,215)        (3,921)
      Insurance claims and policy reserves      340          3,230
      Accrued interest payable               (6,387)           756
      Other payables to affiliates            6,869         74,254
      Other liabilities                      14,725         32,968

Net cash flows from operating activities    229,819        390,102

Cash flows from investing activities:
  Finance receivables:
      Principal collected                 2,767,976      2,802,231
      Receivables originated or 
        purchased                        (2,936,450)    (2,833,499)
  Proceeds from sales of securities          63,170         85,358
  Proceeds from maturities of securities     44,372         26,855
  Purchases of securities                  (273,843)      (150,763)
  Net additions to property and equipment   (15,302)       (10,658)
  Net increase in notes receivable - 
    affiliates                              (50,963)       (86,679)
  Other                                     151,890        124,314

Net cash flows from investing activities   (249,150)       (42,841)

Cash flows from financing activities:
  Net decrease in loans payable - 
    short term                              (81,453)      (187,977)
  Proceeds from issuance of long-term debt -
      Senior                                365,679
      Subordinated - affiliate                              50,000
  Repayment of long-term debt -
      Senior                               (348,623)       (19,860)
      Subordinated                          (50,000)       (20,000)
  Dividends paid                             (1,729)      (150,000)
  Paid in capital                           112,000

Net cash flows used for financing 
  activities                                 (4,126)      (327,837)

Net increase (decrease) in cash and
  cash equivalents                          (23,457)        19,424

Cash and cash equivalents 
  beginning of period                       141,692         72,991

Cash and cash equivalents end of period $   118,235    $    92,415

See accompany notes to consolidated financial statements.

<PAGE 6>

                             NORWEST FINANCIAL, INC.
                                        
             Notes to Consolidated Financial Statements (Unaudited)
                                        

The accompanying unaudited financial statements and notes have been prepared  in
accordance  with the accounting policies set forth in Norwest Financial,  Inc.'s
1996  Annual  Report  on Form  10-K and should be read in conjunction  with  the
Notes  to  Consolidated  Financial  Statements  therein.   In  the  opinion   of
management,  all  adjustments (none of which were other  than  normal  recurring
accruals)  necessary to present fairly the financial statements for the  periods
presented have been included.

1.   Principles of Consolidation.

The consolidated financial statements include the accounts of Norwest Financial,
Inc.  (the  "Company") and subsidiaries.  Intercompany accounts and transactions
are  eliminated.  The Company is a wholly-owned subsidiary of Norwest  Financial
Services,  Inc.  which  is  a  wholly-owned subsidiary  of  Norwest  Corporation
("Norwest").

2.   Dividend Restrictions.

Certain  of  the  Company's bank credit agreements contain  requirements  as  to
maintenance  of  net  worth  (as  defined).   Approximately  $650   million   of
consolidated retained earnings was unrestricted at June 30, 1997.

3.   Other Income.

Income  from  affiliates was $13.2 million and $13.6 million  for  the  quarters
ended  June 30, 1997 and 1996, respectively, and $26.9 million and $28.3 million
for the six months ended June 30, 1997 and 1996, respectively.

Interest  and dividends from securities available for sale and cash  equivalents
were  $15.7 million and $12.9 million for the quarters ended June 30,  1997  and
1996,  respectively and $29.9 million and $25.7 million for the six months ended
June 30, 1997 and 1996, respectively.

4.   Capital Infusion.

On  April 1, 1997, the Company received a capital infusion of $112 million  from
Norwest  Financial  Services,  Inc.  for  the  sole  purpose  of  investing   in
securities.   All  of  the  funds received in the  capital  infusion  have  been
invested in securities and none of these funds are currently being used  in  the
operations of the company.

<PAGE 7>
                             NORWEST FINANCIAL, INC.
                                        
             Notes to Consolidated Financial Statements (Unaudited)


5.   Business Acquisition.

On  June  23,  1997, Norwest entered into a definitive purchase  agreement  with
BankBoston Corporation ("BankBoston") for Norwest to acquire Fidelity Acceptance
Corporation  ("Fidelity"), BankBoston's subprime automobile finance  subsidiary.
It  is  contemplated that the Company will acquire Fidelity, directly or through
Norwest.   The principal business of Fidelity is making direct loans secured  by
automobiles  and  purchasing sales finance contracts  directly  from  automobile
dealers.  As of May 31, 1997, Fidelity and its subsidiaries operated 150  branch
offices in 31 states and Guam and had approximately $1.12 billion of net finance
receivables outstanding.

<PAGE 8>
                             NORWEST FINANCIAL, INC.
                                        
                      Management's Discussion and Analysis
                of Financial Condition and Results of Operations
                                        
Norwest   Financial's  performance  for  the  second  quarter  of  1997  closely
paralleled  performance for the first six months of 1997.   The  discussion  and
analysis  that follows, therefore, is limited to a discussion of the  first  six
months  as  a  whole and does not include a  separate discussion of  the  second
quarter unless otherwise noted.

Norwest Financial's total income (revenue) increased 2% for the first six months
($767.9 million in the first six months of 1997 compared with $752.4 million  in
the first six months of 1996).

Income  from finance charges and interest increased 1% for the first six  months
($600.0 million in the first six months of 1997 compared with $593.4 million  in
the  first  six  months of 1996).  Changes in income from  finance  charges  and
interest  result primarily from (1) changes in the amount of finance receivables
outstanding  and  (2)  changes in the rate of charge on those  receivables.   In
total,  average  finance receivables outstanding in first  six  months  of  1997
increased  2%  from  the first six months of 1996; average consumer  receivables
outstanding  increased  3%  while  average  commercial  receivables  outstanding
declined 3%.


                                        Six Months Ended June 30,

Rate of charge on finance receivables:       1997        1996

     Consumer                                21.03%      21.16%
     Commercial                              13.59       14.99
     Total                                   20.41       20.62

The  increase in income from finance charges and interest was due to  growth  in
average  finance receivables outstanding offset somewhat by the decline  in  the
rate  of  charge.  The increase in average finance receivables was due primarily
to regular business activity.

Insurance premiums and commissions increased 3% ($69.9 million in the first  six
months  of  1997 compared with $67.6 million in the first six months  of  1996.)
Changes in insurance premiums and commissions generally correspond to changes in
average consumer finance loans outstanding (those secured by real estate and not
secured  by real estate). Average consumer finance loans outstanding increased 
5% in the first six months of 1997 compared with the first six months of 1996.


<PAGE 9>
                             NORWEST FINANCIAL, INC.
                                        
                      Management's Discussion and Analysis
           of Financial Condition and Results of Operations, Continued


Insurance losses and loss expenses increased 1% ($20.3 million in the first six
months of 1997 compared with $20.0 million in the first six months of 1996).

Other  income  increased  7% ($98.1 million in the  first  six  months  of  1997
compared  with $91.4 million in the first six months of 1996).  The increase  is
due primarily to an increase in investment income and other fee income offset in
part by a decrease in income from affiliates.

Operating expenses increased 3% ($260.8 million in the first six months of  1997
compared with $254.4 million in the first six months of 1996).  The increase was
due primarily to increases in employee compensation and benefits and other costs
resulting  from  business expansion.  At June 30, 1997,  Norwest  Financial  was
operating 1,097 consumer finance branch offices compared with 1,047 at June  30,
1996.

Interest  and debt expense decreased 1% ($185.8 million in the first six  months
of  1997 compared with $187.4 million in the first six months of 1996).  Changes
in  interest and debt expense result primarily from (1) changes in the amount of
borrowings outstanding and (2) changes in the cost of those borrowings.  Average
total  outstanding borrowings in the first six months of 1997 increased 1%  from
the first six months of 1996.

                                   Six Months Ended June 30,

Costs of funds:                      1997         1996

     Short-term                      5.15%        5.44%
     Long-term                       6.84         6.94
     Total                           6.33         6.50


Changes  in average debt outstanding generally corresponds to changes in average
finance  receivables outstanding combined with the change in notes receivable  -
affiliates.   Average finance receivables and notes receivable -  affiliates  in
the  first  six months of 1997 remained approximately the same as the first  six
months of 1996.



<PAGE 10>

                             NORWEST FINANCIAL, INC.
                                        
                      Management's Discussion and Analysis
           of Financial Condition and Results of Operations, Concluded
                                        

Provision for credit losses increased 11% ($99.4 million in the first six months
of 1997 compared with $89.8 million in the first six months of 1996).  Net write
offs  as a percentage of average net receivables outstanding increased to  1.61%
in  the first six months of 1997 compared with 1.51% in the first six months  of
1996.   Provision for credit losses in the second quarter of 1997  increased  2%
compared  with  the  second quarter of 1996 ($44.6 million compared  with  $43.9
million).  Net write-offs as a percentage of average net receivables outstanding
was  .74%  for both the second quarter of 1997 and the second quarter  of  1996.
Norwest Financial, along with the consumer finance industry, has experienced  an
increase in net write-offs.  Management believes the allowance for credit losses
at  June 30, 1997, and December 31, 1996, is adequate to absorb possible  losses
in the finance receivables portfolio.

Federal and state income taxes decreased 2% ($70.5 million in the six months  of
1997  compared  with  $71.7  million in the first  six  months  of  1996).   The
effective tax rate was 35.0% for the first six months of 1997 and 35.7% for  the
first six months of 1996.

The  Company and one of its Canadian subsidiaries maintain bank lines of  credit
and revolving credit agreements to provide an alternative source of liquidity to
support the commercial paper borrowings.  At June 30, 1997, lines of credit  and
revolving credit agreements totaling $1,327 million were being maintained at  33
unaffiliated banks.  None of this credit was in use at the time.

The  Company and one of its Canadian subsidiaries obtain long-term debt  capital
primarily  from  (i)  the  issuance of debt securities  to  the  public  through
underwriters on a firm-commitment basis, (ii) the issuance of debt securities to
institutional investors, and (iii) term borrowings from commercial  banks.   The
Company and one of its Canadian subsidiaries also obtain long-term debt from the
issuance  of  medium-term  notes (which may have maturities  ranging  from  nine
months to 30 years) through underwriters (acting as agent or principal).

Norwest  Financial anticipates the continued availability of borrowed funds,  at
prevailing  interest  rates, to provide for Norwest Financial's  growth  in  the
foreseeable  future.   Funds  are also generated  internally  from  payments  of
principal and interest received on Norwest Financial's finance receivables.







<PAGE 11>
                           PART II.  OTHER INFORMATION
                                        
                             NORWEST FINANCIAL, INC.


Item 5.  Other Information

                       RATIOS OF EARNINGS TO FIXED CHARGES

The  following  table  sets forth the ratios of earnings  to  fixed  charges  of
Norwest Financial, Inc. and its subsidiaries for the periods indicated:

    Six Months Ended                      Years Ended December 31,
      June 30, 1997                 1996    1995    1994    1993    1992

          2.05                      2.11    2.13    2.26    2.22    2.02

The  ratios  of  earnings to fixed charges have been computed  by  dividing  net
earnings  plus  fixed charges and income taxes by fixed charges.  Fixed  charges
consist of interest and debt expense plus one-third of rentals (which is  deemed
representative of the interest factor).


Item 6.  Exhibits and Reports on Form 8-K.

(a)  Exhibits:

Exhibit (12)   Computation of ratios of earnings to fixed charges for the  years
               ended  December 31, 1996, 1995, 1994, 1993 and 1992 and  the  six
               months ended June 30, 1997.

(b)  Reports on 8-K

No  reports on Form 8-K were filed during the quarter for which this  report  is
filed.

                               S I G N A T U R E S

Pursuant  to  the  requirements of the Securities  Exchange  Act  of  1934,  the
registrant  has  duly  caused this report to be signed  on  its  behalf  by  the
undersigned thereunto duly authorized.

                           NORWEST FINANCIAL, INC.

Date:  August 1, 1997

                           By  /S/ Eric Torkelson
                              Eric Torkelson
                              Vice President and Controller
                              (Principal Accounting Officer)